Adani Green Awarded World's Largest Solar Contract Worth $6 Billion; Will Create 4 Lakh Jobs

Adani Green Energy Limited has won the first of its kind manufacturing linked solar agreement from the Solar Energy Corporation of India (SECI) entailing an investment of close to $6 billion.

As a part of the award, AGEL will develop 8 GW of solar projects along with a commitment that will see Adani Solar establish 2 GW of additional solar cell and module manufacturing capacity.

This award, the largest of its type, ever, in the world, will entail a single investment of Rs. 45,000 crores and will create 400,000 direct and indirect jobs, AGEL said in a statement.

It will also displace 900 million tonne of carbon dioxide over its lifetime, the statement added.

With this win, AGEL will now have 15 GW capacity under operation, construction or under contract. This will accelerate company's journey towards becoming the world's largest renewables company by 2025.

The company is targeting an installed generation capacity of 25 GW of renewable power by 2025 with an investment of Rs 112,000 crores ($15 billion) in the renewable energy space over the next 5 years.

Commenting on the win, Gautam Adani, Chairman of the Adani Group said, "India made a commitment at the 2015 United Nations Climate Change Conference in Paris that it would lead the Climate Change revolution and today is the leader among the just eight nations on track to meet their COP21 commitments. The fact that renewable power will transition into becoming the world's cleanest and most economical fuel is a foregone conclusion and the Adani Group intends to play a leading role in this journey."

Based on the award agreement the 8 GW of solar development projects will be implemented over the next five years. The first 2 GW of generation capacity will come online by 2022 and the subsequent 6 GW capacity will be added in 2 GW annual increments through 2025.

The projects will include a variety of locations, including a 2 GW single-site generation project that is tied for the rank of the largest single-site project announced globally.

The solar cell and module manufacturing capacity of 2 GW will be established by 2022 and along with the existing 1.3 GW of capacity will further consolidate the Group's position as India's largest solar manufacturing facility.

Adani Green Energy Limited's business model of focusing on long-term contracts with investment grade counter-parties, rapidly constructing large projects, and thereafter building solar development partnerships with major global integrated energy players that seek to reduce their carbon footprint has enabled it to expand rapidly since its public listing less than two years ago. This new contract will further help strengthen this model, the company statement said.

Adani Group, is a diversified organisation in India with a combined market cap of $22 billion comprising 6 publicly traded companies. AGEL, part of the diversified Adani Group, has 15GW of operating, in-construction and awarded wind and solar parks. The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects.

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